The benefits of multi-family investing are many, and may prove valuable if you’re considering breaking into the real estate industry. Perhaps one of the biggest benefits is that you can live on the property, and then rent out additional units for extra income.
This works whether you live in a two-unit building or a larger one. While your tenant helps pay down your principle, you may even be able to collect enough in rent to cover your own living costs.
Surprisingly, maintenance costs for multi-family properties are sometimes lower than the upkeep necessary for multiple single-family rentals. That’s because big-ticket items like a new roof or new HVAC unit cover multiple properties, meaning you only have to replace one not several.
It’s also easier to close on a multi-family unit than it is multiple properties with multiple contracts and sellers. Financing may also be easier. While a single loan often covers a multi-family property, when you buy multiple properties you often need several financing options, and that means dealing with several lenders, which could drag out the process.